Albuquerque Office Figures Q1 2025

The Albuquerque Office market started the new year with a total vacancy rate of 13.0%, up by 20 basis points (bps) from last quarter’s 12.8% and 140 bps year-over-year from 11.6%. The quarterly increase was primarily due to a significant exit in the Airport Submarket, AAA’s downsize, and a confirmed vacancy at One Park Square. Sublease availability saw a slight dip from last quarter reaching 120,039 sq. ft. The availability reflected a decrease of 15,409 sq. ft. from Q4 2024 and a more significant decrease of 167,680 sq. ft. from Q1 2024.

Over the past five years, the market has seen fluctuations, with vacancy rates peaking at 18.0% in Q2 2020 and absorption reaching as high as 580,889 sq. ft. in Q3 2022. Net absorption for Q1 2025 was nearly flat, registering at negative 1,597 sq. ft. This marked an improvement from the negative 183,827 sq. ft. last quarter and the negative 57,090 sq. ft. year-over-year. The average yearly direct lease rate in Q1 2025 was $21.36 per-sq.-ft., up from $20.68 in Q4 2024 and a slight decrease from $21.58 in Q1 2024. The recent delivery of the Winrock Town Center's Portland Building added 19,712 sq. ft. of Class A office inventory to the Albuquerque suburban market.